Low-doc home loan stands for low documentation home loans.
Low-doc loans are a way for small business owners, investors and other ABN holders to meet the requirements of a home loan application. They are designed for borrowers who otherwise wouldn't be able to get a home loan approved due to their inability to validate their earnings using traditional methods.
Low-doc home loan therefore does not require borrowers to provide their income using typical required documents, such as:
Two year company financial statements
Two year company tax returns
Two year individual tax returns
Notices of assessments
However, the relaxed documental proof in substantiating borrowers’ serviceability does mean the lender is facing greater risks. This results in low-doc loans normally having higher interest rates, reduction in loan-to-value ratio, reduced loan features to offset such risks.
Due to the risky nature of low-doc loans, not every lender will offer this product to borrowers.
Have questions regards low-doc loans? MoreMore Finance can provide you with tailored low-doc home loan products to meet your needs.
Want to contact us today?
Please call 1300 613 813 for a free-cost consultation.
Or, simply fill the form [enquire now], we will go back to you in 24-hour.
Comments